Dycom Industries, Inc. Announces Fiscal 2020 Fourth Quarter And Annual Results And Provides Guidance For The Next Fiscal Quarter
PALM BEACH GARDENS, Fla., Feb. 26, 2020 /PRNewswire/ -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the fourth quarter and fiscal year ended January 25, 2020.
Fourth Quarter Fiscal 2020 Highlights
-- Contract revenues of $737.6 million for the quarter ended January 25,
2020, compared to $748.6 million for the quarter ended January 26, 2019.
Contract revenues for the quarter ended January 25, 2020 increased 1.3%
on an organic basis after excluding $20.4 million in contract revenues
from storm restoration services for the quarter ended January 26, 2019.
-- Non-GAAP Adjusted EBITDA of $44.5 million, or 6.0% of contract revenues,
for the quarter ended January 25, 2020, compared to $59.8 million, or
8.0% of contract revenues, for the quarter ended January 26, 2019.
-- On a GAAP basis, net loss was $11.2 million, or a loss of $0.35 per
common share, for the quarter ended January 25, 2020, compared to net
loss of $12.1 million, or a loss of $0.38 per common share, for the
quarter ended January 26, 2019. Non-GAAP Adjusted Net Loss was $7.2
million, or a loss of $0.23 per common share, for the quarter ended
January 25, 2020, compared to Non-GAAP Adjusted Net Income of $3.2
million, or $0.10 per Non-GAAP Adjusted Diluted Share, for the quarter
ended January 26, 2019.
-- During the quarter ended January 25, 2020, the Company reduced net debt
by approximately $176.3 million by repaying $108.6 million of borrowings
on the Senior Credit Facility, purchasing $25.0 million of principal
amount of the Company's 0.75% convertible senior notes due September
2021 (the "Notes") at a discount for $24.3 million, and increasing cash.
As of January 25, 2020, the Company had cash and equivalents of
approximately $54.6 million, no outstanding borrowings on its revolving
line of credit, $444.4 million of term loans outstanding and $460.0
million principal amount of Notes outstanding.
Fiscal 2020 Highlights
-- Contract revenues of $3.340 billion for the fiscal year ended January
25, 2020, compared to $3.128 billion for the fiscal year ended January
26, 2019. Contract revenues for the fiscal year ended January 25, 2020
increased 8.3% on an organic basis after excluding contract revenues
from an acquired business that was not owned for the full period in both
the current and prior year periods and contract revenues from storm
restoration services. Contract revenues from that acquired business were
$26.6 million for the fiscal year ended January 25, 2020, compared to
$29.6 million for the fiscal year ended January 26, 2019. Contract
revenues from storm restoration services were $4.7 million for the
fiscal year ended January 25, 2020, compared to $42.9 million for the
fiscal year ended January 26, 2019.
-- Non-GAAP Adjusted EBITDA of $310.0 million, or 9.3% of contract
revenues, for the fiscal year ended January 25, 2020, compared to $330.0
million, or 10.5% of contract revenues, for the fiscal year ended
January 26, 2019.
-- On a GAAP basis, net income was $57.2 million, or $1.80 per common share
diluted, for the fiscal year ended January 25, 2020, compared to $62.9
million, or $1.97 per common share diluted, for the fiscal year ended
January 26, 2019. Non-GAAP Adjusted Net Income was $72.4 million, or
$2.27 per common share diluted, for the fiscal year ended January 25,
2020, compared to $88.5 million, or $2.78 per Non-GAAP Adjusted Diluted
Share, for the fiscal year ended January 26, 2019.
Outlook
The Company also announced its outlook for the fiscal quarter ending April 25, 2020. The Company currently expects total contract revenues for the fiscal quarter ending April 25, 2020 to range from $730 million to $780 million. On a GAAP basis, loss per common share for the fiscal quarter ending April 25, 2020 is expected to range from $(0.20) to $(0.03) and Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share is expected to range from $(0.09) to $0.08. Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share guidance excludes $4.9 million of pre-tax interest expense, or $0.11 per common share on an after-tax basis, for the non?cash amortization of the debt discount associated with the Company's 0.75% convertible senior notes due September 2021. A reconciliation of Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share guidance provided for the fiscal quarter ending April 25, 2020, along with reconciliations of other Non-GAAP measures, is included within the press release tables. Additional information on the Company's outlook is provided in the presentation materials available on the Company's website posted in connection with the conference call referenced below.
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, the Company may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. See Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures in the press release tables that follow.
Conference Call Information and Other Selected Data
The Company will host a conference call to discuss fiscal 2020 fourth quarter results on Wednesday, February 26, 2020 at 9:00 a.m. Eastern time. A live webcast of the conference call and related materials will be available on the Company's Investor Center website at https://ir.dycomind.com. Parties interested in participating via telephone should dial (844) 291-6362 (United States) or (234) 720-6995 (International) with the participant code 5156533 ten minutes before the conference call begins and ask for the "Dycom Results" conference call. For those who cannot participate at the scheduled time, a replay of the live webcast and the related materials will be available at https://ir.dycomind.com until Friday, March 27, 2020.
About Dycom Industries, Inc.
Dycom is a leading provider of specialty contracting services throughout the United States. These services include program management; planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers. Additionally, Dycom provides underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities.
Forward Looking Information
This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. These statements include those related to the outlook for the quarter ending April 25, 2020 found under the "Outlook" and "Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures" sections of this release. Forward looking statements are based on management's current expectations, estimates and projections. These statements are subject to risks and uncertainties that may cause actual results for completed periods and periods in the future to differ materially from the results projected or implied in any forward-looking statements contained in this press release. The most significant of these risks and uncertainties are described in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) and include business and economic conditions and trends in the telecommunications industry affecting the Company's customers, customer capital budgets and spending priorities, the adequacy of the Company's insurance and other reserves and allowances for doubtful accounts, whether the carrying value of the Company's assets may be impaired, preliminary purchase price allocations of acquired businesses, expected benefits and synergies of acquisitions, the future impact of any acquisitions or dispositions, adjustments and cancellations related to the Company's backlog, weather conditions, the anticipated outcome of other contingent events, including litigation, liquidity and other financial needs, the availability of financing, and the other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update forward-looking statements.
---Tables Follow---
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
Unaudited
January 25, January 26,
2020 2019
---
ASSETS
Current assets:
Cash and equivalents $
54,560 $
128,342
Accounts receivable, net 817,245 625,258
Contract assets 253,005 215,849
Inventories 98,324 94,385
Income tax receivable 3,168 3,461
Other current assets 31,991 29,145
---
Total current assets 1,258,293 1,096,440
---
Property and equipment, net 376,610 424,751
Operating lease right-of-use
assets(1) 69,596
Goodwill and other intangible
assets, net 465,694 486,874
Other 47,438 89,438
---
Total non-current assets 959,338 1,001,063
---
Total assets $
2,217,631 $
2,097,503
===
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $
119,612 $
119,485
Current portion of debt 22,500 5,625
Contract liabilities 16,332 15,125
Accrued insurance claims 38,881 39,961
Operating lease liabilities(1) 26,581
Income taxes payable 344 721
Other accrued liabilities 98,775 104,074
---
Total current liabilities 323,025 284,991
Long-term debt 844,401 867,574
Accrued insurance claims -
non-current 56,026 68,315
Operating lease liabilities -
non-current(1) 43,606
Deferred tax liabilities, net
- non-current 75,527 65,963
Other liabilities 6,442 6,492
---
Total liabilities 1,349,027 1,293,335
Total stockholders' equity 868,604 804,168
---
Total liabilities and
stockholders' equity $
2,217,631 $
2,097,503
===
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share amounts)
Unaudited
Quarter Quarter Fiscal Year Fiscal Year
Ended Ended Ended Ended
January 25, 2020 January 26, 2019 January 25, 2020 January 26, 2019
---
Contract revenues $
737,603 $
748,619 $
3,339,682 $
3,127,700
---
Costs of earned revenues, excluding depreciation and amortization(2) 633,203 633,279 2,779,730 2,562,392
General and administrative3,4 60,976 73,540 254,590 269,140
Depreciation and amortization 46,615 45,909 187,556 179,603
Total 740,794 752,728 3,221,876 3,011,135
---
Interest expense, net5 (12,620) (12,447) (50,859) (44,369)
Loss on debt extinguishment6 (76) - (76)
Other income, net 554 1,157 11,665 15,842
---
(Loss) income before income taxes (15,333) (15,399) 78,536 88,038
(Benefit) provision for income taxes7 (4,144) (3,345) 21,321 25,131
Net (loss) income $
(11,189) $
(12,054) $
57,215 $
62,907
===
(Loss) earnings per common share:
Basic (loss) earnings per common share $
(0.35) $
(0.38) $
1.82 $
2.01
===
Diluted (loss) earnings per common share $
(0.35) $
(0.38) $
1.80 $
1.97
===
Shares used in computing (loss) earnings per common share:
Basic 31,549,417 31,359,765 31,498,474 31,250,376
===
Diluted8,9 31,549,417 31,359,765 31,821,782 31,990,168
===
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES
(Dollars in thousands)
Unaudited
CONTRACT REVENUES, NON-GAAP ORGANIC CONTRACT REVENUES, AND GROWTH (DECLINE) %'s
Contract Revenues Revenues Non-GAAP GAAP - Non-
Revenues - from from storm (Decline) GAAP -
GAAP acquired restoration -Organic Growth Organic
businesses
10 services Contract Growth %
Revenues %
---
Quarter Ended January 25, 2020 $
737,603
$
$ $
737,603 (1.5)% 1.3%
Quarter Ended January 26, 2019 $
748,619
$ $
(20,409) $
728,210
Fiscal Year Ended January 25, 2020 $
3,339,682 $
(26,644) $
(4,716) $
3,308,322 6.8% 8.3%
Fiscal Year Ended January 26, 2019 $
3,127,700 $
(29,555) $
(42,888) $
3,055,257
NET (LOSS) INCOME AND NON-GAAP ADJUSTED EBITDA
Quarter Quarter Fiscal Year Fiscal Year
Ended Ended Ended Ended
January 25, January 26, January 25, January 26,
2020 2019 2020 2019
Reconciliation of net income (loss) to Non-GAAP Adjusted EBITDA:
Net (loss) income $
(11,189) $
(12,054) $
57,215 $
62,907
Interest expense, net 12,620 12,447 50,859 44,369
(Benefit) provision for income taxes (4,144) (3,345) 21,321 25,131
Depreciation and amortization 46,615 45,909 187,556 179,603
Earnings Before Interest, Taxes, Depreciation & Amortization
("EBITDA") 43,902 42,957 316,951 312,010
Gain on sale of fixed assets (1,094) (2,192) (14,879) (19,390)
Stock-based compensation expense 1,584 1,910 10,034 20,187
Loss on debt extinguishment6 76 76
Charge for (recovery of) accounts receivable and contract assets4 17,157 (10,345) 17,157
Q1-20 charge for warranty costs(2) 8,200
Non-GAAP Adjusted EBITDA $
44,468 $
59,832 $
310,037 $
329,964
Contract revenues $
737,603 $
748,619 $
3,339,682 $
3,127,700
Non-GAAP Adjusted EBITDA % of contract revenues 6.0% 8.0% 9.3% 10.5%
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)
(Dollars in thousands, except share amounts)
Unaudited
NET (LOSS) INCOME, NON-GAAP ADJUSTED NET (LOSS) INCOME, DILUTED (LOSS) EARNINGS PER COMMON SHARE, NON-GAAP ADJUSTED DILUTED (LOSS) EARNINGS PER COMMON SHARE, AND NON-GAAP ADJUSTED DILUTED SHARES
Quarter Quarter Fiscal Year Fiscal Year
Ended Ended Ended Ended
January 25, January 26, January 25, January 26,
2020 2019 2020 2019
---
Reconciliation of net (loss) income to Non-GAAP Adjusted Net (Loss) Income:
Net (loss) income $
(11,189) $
(12,054) $
57,215 $
62,907
---
Pre-Tax Adjustments:
Non-cash amortization of debt discount on Notes 5,097 4,881 20,112 19,103
Q1-20 charge for warranty costs(2) - 8,200
Charge for (recovery of) accounts receivable and contract assets4 - 17,157 (10,345) 17,157
Impact on stock-based compensation expense from non-cash charge for accounts receivable and contract assets11 - (1,851) (1,851)
Tax Adjustments:
Tax expense for the vesting and exercise of share-based awards 255 371 1,056 371
Tax expense related to previous tax year filing - 1,092
Tax effect of pre-tax adjustments (1,402) (5,257) (4,941) (9,168)
---
Total adjustments, net of tax 3,950 15,301 15,174 25,612
Non-GAAP Adjusted Net (Loss) Income $
(7,239) $
3,247 $
72,389 $
88,519
===
Reconciliation of diluted (loss) earnings per common share to Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share:
GAAP diluted (loss) earnings per common share $
(0.35) $
(0.38) $
1.80 $
1.97
Total adjustments, net of tax and dilutive share effect of Notes9 0.13 0.49 0.48 0.82
---
Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share $
(0.23) $
0.10 $
2.27 $
2.78
===
Shares used in computing Non-GAAP Adjusted Diluted (Loss) Earnings per Common Share:
GAAP diluted shares 31,549,417 31,359,765 31,821,782 31,990,168
Adjustment for economic benefit of note hedge related to Notes9 - (183,799)
Adjustment for dilutive common stock equivalents12 - 418,695
---
Non-GAAP Adjusted Diluted Shares9 31,549,417 31,778,460 31,821,782 31,806,369
===
Amounts in table above may not add due to rounding.
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES
(CONTINUED)
Unaudited
OUTLOOK - DILUTED LOSS PER COMMON SHARE AND
NON-GAAP ADJUSTED DILUTED (LOSS) EARNINGS
PER COMMON SHARE
Quarter Ending
April 25, 2020
GAAP diluted loss per
common share13
$(0.20) - $(0.03)
Adjustment:
Addback of after-tax
non-cash
amortization of debt
discount on Notes14 0.11
Non-GAAP Adjusted
Diluted (Loss)
Earnings per Common
Share13
$(0.09) - $0.08
DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED)
Explanation of Non-GAAP Financial Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company's quarterly results releases, trend schedules, conference calls, slide presentations, and webcasts, it may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. The Company believes that the presentation of certain Non-GAAP financial measures in these materials provides information that is useful to investors because it allows for a more direct comparison of the Company's performance for the period reported with the Company's performance in prior periods. The Company cautions that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results. Management defines the Non-GAAP financial measures used as follows:
-- Non-GAAP Organic Contract Revenues - contract revenues from businesses
that are included for the entire period in both the current and prior
year periods, excluding contract revenues from storm restoration
services. Non-GAAP Organic Contract Revenue growth is calculated as the
percentage change in Non-GAAP Organic Contract Revenues over those of
the comparable prior year periods. Management believes organic growth is
a helpful measure for comparing the Company's revenue performance with
prior periods.
-- Non-GAAP Adjusted EBITDA - net income (loss) before interest, taxes,
depreciation and amortization, gain on sale of fixed assets, stock-based
compensation expense, and certain non-recurring items. Management
believes Non-GAAP Adjusted EBITDA is a helpful measure for comparing the
Company's operating performance with prior periods as well as with the
performance of other companies with different capital structures or tax
rates.
-- Non-GAAP Adjusted Net Income (Loss) - GAAP net income (loss) before the
non-cash amortization of the debt discount and the related tax impact,
certain tax impacts resulting from vesting and exercise of share-based
awards, and certain non-recurring items.
-- Non-GAAP Adjusted Diluted Earnings (Loss) per Common Share and Non-GAAP
Adjusted Diluted Shares - Non-GAAP Adjusted Net Income (Loss) divided by
Non-GAAP Adjusted Diluted Shares outstanding. The Company has a hedge in
effect to offset the economic dilution of additional shares that would
be issued in connection with the conversion of the Notes up to an
average quarterly share price of $130.43. The measure of Non-GAAP
Adjusted Diluted shares used in computing Non-GAAP Adjusted Diluted
Earnings per Common Share excludes dilution from the Notes. Management
believes that the calculation of Non-GAAP Adjusted Diluted shares to
reflect the note hedge will be useful to investors because it provides
insight into the offsetting economic effect of the hedge against
potential conversion of the Notes.
Management excludes or adjusts each of the items identified below from Non-GAAP Adjusted Net Income (Loss) and Non-GAAP Adjusted Diluted Earnings (Loss) per Common Share:
-- Non-cash amortization of debt discount on Notes - The Company's Notes
were allocated between debt and equity components. The difference
between the principal amount and the carrying amount of the liability
component of the Notes represents a debt discount. The debt discount is
being amortized over the term of the Notes but does not result in
periodic cash interest payments. The Company has excluded the non-cash
amortization of the debt discount from its Non-GAAP financial measures
because it believes it is useful to analyze the component of interest
expense for the Notes that will be paid in cash. The exclusion of the
non-cash amortization from the Company's Non-GAAP financial measures
provides management with a consistent measure for assessing financial
results.
-- Loss on debt extinguishment - The Company incurred a pre-tax charge of
approximately $0.1 million for extinguishment of debt in connection with
the purchase of $25.0 million aggregate principal amount of its 0.75%
convertible senior notes due September 2021 for $24.3 million during the
quarter ended January 25, 2020. Management believes excluding the loss
on debt extinguishment from the Company's Non-GAAP financial measures
assists investors' overall understanding of the Company's current
financial performance. The Company believes this type of charge is not
indicative of its core operating results. The exclusion of the loss on
debt extinguishment from the Company's Non-GAAP financial measures
provides management with a consistent measure for assessing the current
and historical financial results.
-- Charge for (recovery of) previously reserved accounts receivable and
contract assets - During the quarter and fiscal year ended January 26,
2019, the Company recognized a pre-tax non-cash charge for accounts
receivable and contract assets of $17.2 million related to balances owed
from a customer. On February 25, 2019, this customer filed a voluntary
petition for reorganization. During the fiscal year ended January 25,
2020, the Company recognized $10.3 million of pre-tax income from the
recovery of previously reserved accounts receivable and contract assets
in the first quarter based on collections from a customer. The Company
excludes the impact of this recovery from its Non-GAAP financial
measures because the Company believes it is not indicative of its
underlying results.
-- Impact on stock-based compensation expense from non-cash charge for
accounts receivable and contract assets - The Company excludes the
impact on stock-based compensation expense from the non-cash charge for
accounts receivable and contract assets from its Non-GAAP financial
measures because the Company believes it is not indicative of its
underlying results or ongoing operations.
-- Q1-20 charge for warranty costs - During the fiscal year ended January
25, 2020, the Company recorded an $8.2 million pre-tax charge in the
first quarter for estimated warranty costs for work performed for a
customer in prior periods. The Company excludes the impact of this
charge from its Non-GAAP financial measures because the Company believes
it is not indicative of its underlying results in the current period.
-- Tax impact of the vesting and exercise of share-based awards - The
Company excludes certain tax impacts resulting from the vesting and
exercise of share-based awards as these amounts may vary significantly
from period to period. Excluding these amounts from the Company's
Non-GAAP financial measures provides management with a more consistent
measure for assessing financial results.
-- Tax impact of previous tax year filing - During the fiscal year ended
January 25, 2020, the Company recognized an income tax expense of $1.1
million in the second quarter on a previous tax year filing. The Company
has excluded this impact because the Company believes it is not
indicative of the Company's underlying results or ongoing operations.
-- Tax impact of pre-tax adjustments - The tax impact of pre-tax
adjustments reflects the Company's effective tax rate used for financial
planning for the applicable period.
Notes
(1) The Company adopted Accounting Standards Update No. 2016-02, Leases (Topic 842), effective January 27, 2019, the first day of fiscal 2020. On adoption, the Company recognized approximately $71.0 million of operating lease right-of-use assets and corresponding operating lease liabilities on its condensed consolidated balance sheet for its operating leases with terms greater than twelve months.
(2 )During the fiscal year ended January 25, 2020, the Company recorded an $8.2 million pre-tax charge in the first quarter for estimated warranty costs for work performed for a customer in prior periods.
(3) Includes stock-based compensation expense of $1.6 million and $1.9 million for the quarters ended January 25, 2020 and January 26, 2019, respectively, and $10.0 million and $20.2 million for the fiscal year ended January 25, 2020 and January 26, 2019, respectively.
(4) During the fourth quarter of the fiscal year ended January 26, 2019, the Company recognized a pre-tax non-cash charge for accounts receivable and contract assets of $17.2 million related to balances owed from a customer. On February 25, 2019, this customer filed a voluntary petition for reorganization. During the first quarter of the fiscal year ended January 25, 2020, the Company recognized $10.3 million of pre-tax income from the recovery of these previously reserved accounts receivable and contract assets based on collections from the customer.
(5) Includes pre-tax interest expense for non-cash amortization of the debt discount associated with the Notes of $5.1 million and $4.9 million for the quarters ended January 25, 2020 and January 26, 2019, respectively, and $20.1 million and $19.1 million for the fiscal years ended January 25, 2020 and January 26, 2019, respectively.
(6) During the quarter ended January 25, 2020, the Company purchased, through open-market transactions, $25.0 million aggregate principal amount of its 0.75% convertible senior notes due September 2021 for $24.3 million, resulting in a remaining principal amount of $460.0 million outstanding. After the write-off of associated debt issuance costs, the net loss on extinguishment was $0.1 million.
(7) For the the fiscal year ended January 25, 2020, the provision for income taxes included $1.1 million recognized in the second quarter related to a previous tax year filing. For the quarter and fiscal year ended January 25, 2020, the provision for income taxes also included $0.3 million and $1.0 million, respectively, of income tax expense for the vesting and exercise of share-based awards.
(8) Diluted shares for the quarters ended January 25, 2020 and January 26, 2019 exclude common stock equivalents related to share-based awards as their effect would be anti-dilutive.
(9) During the first and second quarters of fiscal 2019, the Company's average stock price exceeded the $96.89 conversion price of its Notes. As a result, diluted shares used in computing diluted earnings per common share for the fiscal year ended January 26, 2019 include approximately 0.2 million weighted shares of potential dilution from the embedded conversion feature in the Notes. The Company has a note hedge in effect to offset the economic dilution of additional shares from the Notes up to an average quarterly share price of $130.43 per share. For the fiscal year ended January 26, 2019, Non-GAAP Adjusted Diluted Shares excludes the GAAP dilutive share effect of the Notes.
(10) Amounts for the fiscal year ended January 25, 2020 and January 26, 2019 represent contract revenues from an acquired business that was not owned for the full period in both the current and prior year periods.
(11) As a result of the pre-tax non-cash charge for accounts receivable and contract assets recognized during the quarter ended January 26, 2019, the Company's stock-based compensation expense was reduced by approximately $1.9 million for the quarter and fiscal year ended January 26, 2019.
(12) For the quarter ended January 26, 2019, GAAP diluted shares excludes 418,695 common stock equivalents related to share-based awards as their effect would be antidilutive. Non-GAAP Adjusted Diluted Shares includes the dilutive effect of these additional shares.
(13) GAAP loss per common share and Non-GAAP Adjusted Loss per Common Share for the quarter ending April 25, 2020 is calculated using 31.6 million shares, which excludes common stock equivalents related to share-based awards as their effect would be anti-dilutive. Non-GAAP Adjusted Diluted Earnings per Common Share is calculated using 31.8 million shares.
(14) The Company expects to recognize approximately $4.9 million in pre-tax interest expense during the quarter ending April 25, 2020 for the non-cash amortization of the debt discount associated with the Notes.
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SOURCE Dycom Industries, Inc.
